CASIL Obtained over RMB 600 Million Investment from Hainan Expressway and CGWIC

Entered into Investment Framework Agreementswith CDB Capital and PICC Life Insurance toJointly Develop the World-class Complex Zone of the Launching Site in Hainan

HONG KONG, Nov. 5, 2012 /PRNewswire/ -- China Aerospace International Holdings Limited ("CASIL" or the "Company", stock code: 31.HK), announced today that its wholly-owned subsidiaries, CASIL Hainan Holdings Limited ("CASIL Hainan") and CASIL New Century Technology Development (Shenzhen) Company Limited ("New Century"), have entered into a subscription agreement with Hainan Expressway Company Limited ("Hainan Expressway") and China Great Wall Industry Corporation ("CGWIC"). Each of Hainan Expressway and CGWIC will invest a sum of approximately RMB 315,000,000 in Hainan Aerospace Investment Management Company Limited ("Hainan Aerospace"), with a total amount of approximately RMB 630,000,000, to jointly develop the Complex Zone of the Launching Site in Hainan ("Hainan Project").

Upon the completion of the subscription agreement, the registered capital of Hainan Aerospace will be raised to RMB 1,200 million from the initial RMB 600 million, and the Company, through its relevant subsidiaries, Hainan Expressway and CGWIC will hold 50%, 25% and 25% of the equity capital of Hainan Aerospace respectively. Furthermore, Hainan Expressway is entitled to an additional subscription of registered capital of not more than RMB300,000,000 under certain conditions.

Meanwhile, CASIL also entered into investment framework agreements with China Development Bank Capital, Co. Ltd ("CDB Capital"), the wholly-owned subsidiary of China Development Bank Corporation, and PICC Life Insurance Company Limited ("PICC Life Insurance"), the subsidiary of The People’s Insurance Company (Group) of China Limited, for their proposed investment in Hainan Aerospace respectively. The agreements set out the major principles and conditions of the respective investment into Hainan Aerospace. CDB Capital has expressed its intent to invest a sum of approximately RMB 600 million into Hainan Aerospace, while PICC Life Insurance’s investment size is yet to be determined upon the completion of the formal subscription agreement.

The Hainan Project is a key project in the new generation Chinese aerospace launching site construction and is also a core project in the planning of the Hainan international tourism island. It aims to become a world-class and the only Asian tourist destination with an aerospace theme.

Hainan Aerospace has already completed the master planning, theme park conceptual design and resettlement area planning of the Hainan Project, and is steadily progressing in the overall development of the relevant projects.

Mr. Zhang Jianheng, Chairman of CASIL, said, "With the strong support from our major shareholder -- China Aerospace Science and Technology Corporation ("CASC"), we have successfully brought in investors with strong capital position into the Hainan Project to form a strategic partnership. We believe that this strategic arrangement will accelerate the development of the Hainan Project."

Mr. Li Hongjun, Executive Director and President of CASIL, commented, "The investors introduced to the Hainan Project all have unique professional backgrounds. Hainan Expressway has abundant experience in the development of real estate and tourism in Hainan Province, while CGWIC has an extensive network in the operation of commercial satellite launch services and international exhibition. Adding to that, both CDB Capital and PICC Life Insurance with strong financial capabilities will greatly enhance our ability in the Hainan Project in terms of financing, infrastructure construction, master planning and complex development. Moreover, the design and content of the Space Park in Hainan can also be further enriched. Hainan Aerospace is actively exploring different financing options with financial institutions to secure stable financial support for the further development of the Hainan Project. Meanwhile, Hainan Aerospace is discussing with experienced professional organizations to explore the cooperation possibilities in terms of different construction projects and theme park operation project."

China Aerospace International Holdings Limited ("CASIL")

CASIL is a public-listed company (stock code: 31.HK) of China Aerospace Science & Technology Corporation (CASC) in Hong Kong. CASIL is engaged in hi-tech manufacturing business. Recently, the company is actively developing its business into aerospace service projects such as Shenzhen Aerospace Science & Technology Plaza and the Complex Zone of the Launching Site in Hainan.

Website: http://www.casil-group.com/

China Aerospace Science and Technology Corporation ("CASC")

As a major shareholder of CASIL, CASC is a large state-owned enterprise and directly managed by State-owned Assets Supervision and Administration Commission of China State Council. CASC is mainly engaged in the research, design, manufacture and launch of space systems such as launch vehicles, satellites and manned spaceships. By virtue of space technology, CASC pays great attention to product development in such areas as satellite applications, information technology, new materials and regenerative energy, special space technology applications, special vehicles and auto parts, and space biology, etc. At present, CASC is constructing a new aerospace industrial system to accelerate the development of its businesses, covering aerospace technology applications, and aerospace services.

Website: http://www.spacechina.com/

China Development Bank Capital, Co. Ltd ("CDB Capital")

CDB Capital is a wholly-owned subsidiary and a unique equity investment platform of China Development Bank Corporation ("CDB"). The company is mainly engaged in private equity fund, direct investment, investment and financial consultancy, etc. Its parent company, CDB owns total assets worth over RMB 6,252 billion as at the end of 2011. CDB strives to assist in the development of markets and support the development of national infrastructure, basic industry, key emerging sectors and national priority projects through various financing facilities.

Website: http://www.cdb.com.cn/

PICC Life Insurance Company Limited  ("PICC Life Insurance")

PICC Life Insurance is a subsidiary of The People’s Insurance Company (Group) of China Limited ("PICC") and is a nationwide insurer established by PICC and certain companies and approved by the State Council of the People’s Republic of China and China Insurance Regulatory Commission. The headquarters of the company is situated at Beijing. It owns total assets worth approximately RMB 250 billion, principally engaging in life insurance, health insurance, casualty insurance, life reinsurance and investment.

Website: http://www.picclife.cn/

Hainan Expressway Company Limited ("Hainan Expressway")

Hainan Expressway was listed in Shenzhen Stock Exchange on 23th January 1998 (stock code: 00886.SZ). Hainan Expressway is principally engaged in the construction, maintenance and management of expressways, the development and sale of real estates as well as the development of tourism services.

Website: http://www.hi-expressway.com/

China Great Wall Industry Corporation ("CGWIC")

CGWIC is the sole commercial organization authorized by the Chinese government to provide satellites, commercial launch services and to carry out international space cooperation, and the company is a wholly-owned subsidiary of CASC. CGWIC also provides integrated service of international aerospace system, professional services in consulting services, international trade, international exhibition, international logistics, project contracting, international bidding, etc.

Website: http://www.cgwic.com/

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